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Mar 15, 2012, 03.47 PM IST
SPA Research has come out with its report on Railway Budget 2012-13. Railways Minister Mr. Dinesh Trivedi while presenting his maiden railway budget, kick started the longpending modernization plan of Indian Railways.
SPA Research has come out with its report on Railway Budget 2012-13.
Railways Minister Mr. Dinesh Trivedi while presenting his maiden railway budget, kick started the longpending modernization plan of Indian Railways. The Railway Budget 2012-13 emphasized the need for public-private partnerships (PPPs) in Indian Railways to boost investments. The proposal that 10% of total infrastructure spend in the 12th five year plan should be on railways, will go long way in improving the current state of railways.
It also laid significant importance on passenger safety measures. Much needed upward revision of passenger fares after 8 long years will help improve the financials of railways. Some of the key initiatives undertaken in this Budget include introduction of new trains, commencement of new passenger services, up gradation of railway stations and better safety norms.
Although the minister has scored enough points as far as intent is concerned, however it is to be seen how railways manages to garner funds for the same. The fund constraint is severely bottlenecking the progress of projects in hand, and the ministry has a huge backlog. Mr. Trivedi is banking very heavily on the gross budgetary support, which has increased marginally this year. Hence a lot would depend on how the modernization and safety plans are funded. Given the worsening financials of government, expecting a budgetary support of INR 2.5 lakh crore from the government in the 12th five year plan seems to be too ambitious.
The reduction in operating ratio from 95% to 85% is well targeted, but it would need major administrative overhaul and rigorous financial discipline.
Key Highlights 2012-13:
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